All nationalities are equal for French Capital Gain tax - French Riviera
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All nationalities are equal for French Capital Gain tax

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france-expat-taxes-net-capital-gain-taxes-2015, Net Capital Gain Tax France

No worries anymore about your Net Capital Gain Tax.

Net  French Capital Gain tax

After three years of different proposals from the French government to raise the taxes for foreign property owners followed by heated debates at the European Court, the situation in France for people that sell their French Riviera property is finally clear.

Net  French Capital Gain tax

All nationalities are equally treated

The level of tax for all nationalities is 19% of the net capital gain. How do you calculate your net capital gain for your French Riviera property? You subtract the purchasing price from the sales price, plus you subtract all the extra costs such as purchase expenses (you had to fly 5 times to the French Riviera and stayed in hotels for a few weeks to search for your property, remember?). Also legal and registration fees can be subtracted from your Net Capital Gain. And don’t forget all your work to improve the property to the beautiful villa you’ve just sold. The French tax Office does require solid proof for the costs; so you need to show the invoices of all the costs you want to deduct.

Net  French Capital Gain tax

For people that buy real estate on the French Riviera this is also good news; they can buy without being punished when they want to resell their property. With the strong British Pound, Dollar and Swiss Franc against the Euro, it is very very interesting to invest right now in French Riviera Real Estate. Banks will give you a poor percentage on your capital; while renting out a property on the Côte d’Azur is far more interesting for your Net Capital Gain Tax France. Imagine those 11 million tourists that visit the Côte d’Azur every year. Some want a hotel, and others want your villa or apartment for a pleasant stay.

Net  French Capital Gain tax

So if you buy a villa or luxury apartment on the French Riviera, you have to think about the future: the moment that you could resell it. Maybe a weird idea; if you’re just about to buy something you’ve always wanted. Still, this is a good advise; scan all your airline tickets, your hotel vouchers and car rental bills, plus any property improvement investments you are going to make. Save the pdf-files in a DropBox. In that way you are prepared when the time has come to re-sell your villa on the Côte d’Azur.

Discounts on your Net French Capital Gain tax 

The longer you wait with selling, the better it is for your Net Capital Gain in France. After five years of ownership, the Net Capital Gain is discounted with 6%; so you just pay 13% to the French tax office. This will remain until the 22nd year of ownership, when tax lowers again to 4%. By then it is easy to make another profitable move; after 22 years of ownership, you do not have to pay capital gains at all.

We can connect you with an english speaking notaire to help with Net Capital Gain Tax France. Meanwhile, if you are looking to invest your foreign money into European real estate, you are most welcome in the South of France! If you can’t find what you are looking for; contact us and we’ll help you, free of costs.

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About The Author
Ab Kuijer

Experienced communicator and marketeer. Former radio, TV and advertising producer in Amsterdam. Author of ‘Think Small, Grow Big’ that explains why advertising is dead. Owner of an international marketing agency specialised in real estate. Lives in the South of France since 2006 for obvious reasons: sun, sea, wine and healthy food. Became on the Cote d'Azur the first Dutch President of the British Chamber of Commerce, later rebranded the Riviera Business Club. Happily married to Jojo. Ab reads and writes 2000 words per day about different topics.Living on the Côte d'Azur is the first real estate portal with a personal service. A daily fresh collection of more than 1400 high-value luxury properties and new construction projects along the French Riviera; from Menton to Saint Tropez. Clients recommend us for being responsive, professional, honest and accurate.With local multi-lingual teams, Living on the Côte d'Azur provides a 'Good old Dutch' Service for foreign buyers, helping them on the journey from a long-list selection towards visiting the short-list. We explain how French real estate law works, and guide the buyers through the impressive French paperwork and are finally present at the notary for the final deed.